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Q » Explain fiscal policy.
06 Dec, 2025
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A » Fiscal policy involves government decisions on taxation and spending to influence the economy. By adjusting these levers, governments aim to manage economic growth, control inflation, and reduce unemployment. Expansionary fiscal policy, such as tax cuts or increased public spending, stimulates economic activity, while contractionary policy, like tax hikes or reduced spending, slows down an overheated economy. Effective fiscal policy promotes stability and growth by aligning with economic conditions.
06 Dec, 2025
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